| Authors |
|
| Publication date |
1994
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| Journal |
International Economic Review
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| Volume | Issue number |
35 | 3
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| Pages (from-to) |
583-602
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
|
| Abstract |
The authors document an empirical puzzle for European Monetary System exchange rates during a period in which the bands on these exchanges rates were (almost) credible, i.e., exchange rate distributions are hump-shaped rather than U-shaped as predicted by the standard target zone model. The authors offer an explanation of this puzzle that is based on the combination of two realistic features, namely the presence of intramarginal interventions and wage/price sluggishness.
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| Document type |
Article
|
| Published at |
https://doi.org/10.2307/2527075
|
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